Overview

You will learn how to analyze a business and build practical scenarios using Excel and AI tools. You will gain hands-on business analysis experience integrating core business concepts across various disciplines. You will have a framework for introductory business analysis and a toolkit to implement it with Excel and the latest AI tools. Learning to translate your thoughts to spreadsheets helps you think clearly, sequentially, and logically. Employers highly value these skills and will help you with your internships.

The course assumes no prior business or Excel background. You will learn how to use the latest AI tools to access advanced Excel functions despite having zero background.

Course code: MULT-UB 55

Fall 2026

Undergrad concentrations:

Materials

I use my materials. Therefore, no textbook is required, and you need not purchase anything.

Attendance and penalty for missing classes

Requiring attendance is necessary for several reasons. First, you incorrectly assume you can catch up on a missed class by watching a recording (if available). Videos do not engage your brain as much as a live class. Second, less than 20% of you watch the recording (if available). You are then lost in class, which provides the wrong signals to me as an instructor. Third, your absence hurts class discussions. Fourth, you miss out on feedback if you do not work through the questions I pose in class. Fifth, I lose the feedback since there are fewer questions.

The policy below will be in effect only after the add/drop period.

Without mandatory attendance, attendance is often below 50%. Therefore, though I dislike doing this, I penalize absences. If you anticipate being absent for good reasons, please email me well in advance. Please enter "Excused" on the attendance sheet described below to avoid the penalty if I approve. If you miss a class due to emergencies and cannot tell me in advance, do not panic. Take care of the emergency first, and then email me. I will permit you to change the "Absent" to "Excused." But if you miss a class without a valid reason, there is a penalty, as stated below.

For sections meeting in 150-190 minute sessions, you will lose one grade (A to A-, A- to B+, B+ to B, B to B-, and so on) for EVERY missed session unless you were explicitly excused via email. Thus, if you miss two class sessions, you will lose two grades, and so on.

For sections meeting in 75-80 minute sessions, you will lose one grade (A to A-, A- to B+, B+ to B, B to B-, and so on) for EVERY TWO missed sessions unless you were explicitly excused via email. Thus, if you miss four class sessions, you will lose two grades, and so on.

Please sit in the same seat in every class and display your name tags. For Zoom classes, you must keep your video on AT ALL TIMES. You must also have a good working headset or mic, as it is extremely rude to be inaudible and force me to ask you to repeat yourself. After entering the class, please mark yourself present in the first 20 minutes on the OneDrive sheet (link posted on Brightspace). You will be marked absent if you are more than 20 minutes late unless it is because of factors beyond your control (traffic, subway, or interviews running late). You will also be marked absent if you leave the class early unless you have my permission or get it afterward. You will get an F in the course if you are caught cheating on the attendance sheet.

Grading

Help and Office

Prerequisites

None

System requirements

Topic 1: How are entities organized?

We will simulate these scenarios in Excel with the assistance of AI tools.

For-profit and nonprofit organizations

Why do nonprofit organizations perform some key economic activities? Why are nonprofit organizations treated differently when it comes to income, sales, and property taxes? Why does the private sector fail to provide public goods?

Excel

Build a simple Excel example showing how the financial statements of these organizations differ and how the three types of taxes affect their cash flows.

Limited liability

Why did the concept of limited liability emerge? How did it help create modern large corporations?

Excel

We will build scenarios showing how limited liability affects investors' losses.

Proprietorships, partnerships, and corporations

How do the tax rules interact with the legal form of business entities such as LLCs, partnerships, and corporations?

Excel

We will build a simple example of single versus double taxation.

Corporate governance

How do shareholders vote? What does a board of directors do? What do executive officers do?

Public versus private corporations

What is the difference between public and private corporations? Why are public corporations audited? Who regulates public corporations?

Topic 2: What are the key financial terms?

[Overview, not a detailed accounting treatment]

Sales, expenses, profits, and margins

What is an income statement? How does it help us analyze the three key metrics of size, growth, and margins? How do revenues differ from receipts? How do expenses differ from payments?

Excel

Simple examples of how income flows differ from cash flows. Common-size income statement. Computation of compounded annual sales growth and margins.

Assets, liabilities, and equity

What is a balance sheet? What events are and are not captured on the balance sheet? What are assets, liabilities, and equity?

Excel

Preparing a common-size balance sheet using total assets as well as total sales in the denominator.

Operating, investing, and financing cash flows

How are cash flows classified? Why is the cash flow classification useful?

Excel

Deriving cash flows from income statements and changes in the balance sheet.

Topic 3: How to prepare a simple budget and business plan?

[Overview, not a detailed modeling treatment]

Revenue drivers

Potential addressable market (PAM), Total addressable market (TAM), Serviceable addressable market (SAM), target market (TM), serviceable obtainable market (SOM), current market share (MS), pricing, and growth across these metrics.

Excel

Building a PAM-TAM-SAM-TM-SOM-MS waterfall. Modeling how changes in price and quantity affect total sales.

Cost drivers

Fixed versus variable costs, contribution margin, average versus marginal costs, and breakeven analysis

Excel

Simulating operating leverage via scenarios. Plotting breakeven points.

Balance sheet drivers: Revenues versus receipts

Timing differences between cash receipts and revenues: Receivables and deferred revenues

Excel

Simulating receivables and deferred revenues

Balance sheet drivers: Expenses versus payments

Timing differences between cash payments and expenses: Prepayments and payables

Excel

Simulating prepayments and payables

Topic 4: How do businesses market their products?

[Overview, not a detailed marketing treatment]

Segmentation, targeting, and positioning

How do businesses identify the target customer group and position their products for success? Why is positioning critical?

The 4Ps: Product, price, place, and promotion

How do businesses pick product attributes, set prices, distribute their products, and promote them?

Differentiation and cost leadership

How do businesses navigate the two strategic choices of differentiation and cost leadership?

Excel

Analyzing margins and simulating how pricing affects margins.

Topic 5: What are the sources of pricing power?

Superior products and services

How do companies sustain superior products and services?

Branding

How does branding address the problem of adverse selection? What is signaling? How are brands created? Which type of products do brands matter the most for?

Excel

Computing the ROI on brand spending.

Network effects and platforms

What gives rise to network effects? How do network effects lead to market dominance?

Excel

Simulating network effects

Switching costs

What factors give rise to switching costs?

Excel

Simulating switching costs

Control of scarce resources

How does control of scarce resources lead to monopolistic behavior?

Excel

Understanding how monopolistic pricing differs from competitive pricing

Topic 6: What are the sources of cost advantage?

Economies of scale

What are the benefits of economies of scale? Which types of industries benefit from economies of scale?

Excel

Simulating economies of scale

Economies of scope

What are the benefits of economies of scope? Which types of industries benefit from economies of scope?

Excel

Simulating synergies, bundling, and economies of scope

Efficient production and experience effects

How do companies sustain the corporate culture of efficient production?

Excel

Simulating the experience curve

Access to cheaper resources

What types of national and legal factors give rise to access to cheaper resources?

Regulatory protection

How does regulatory protection lead to lower costs or higher prices?

Topic 7: What is the key challenge in managing and growing a business?

[Overview, not a detailed management and economics treatment]

Recruiting

How do companies identify promising employees and convince them to join? How do start-ups address this challenge?

Delegation

Why is delegation critical to scaling a company?

Monitoring

Delegation creates the need to monitor and measure performance. What kind of performance measurement systems do companies use?

Aligning incentives

Self-interested behavior under asymmetric information leads to problems of adverse selection and moral hazard. How do companies use incentive pay to address these issues?

Excel

Simulating the adverse selection and the market for lemons problem.

Simulating job market signaling

Simulating moral hazard with risk aversion

Incentivizing cooperation

How are performance measurement and reward systems organized to encourage cooperation within a business entity?

Excel

Simulating the free rider problem, positive externalities, and negative externalities.

Topic 8: How to account for loans?

Time value of money

Simple versus compound interest

Excel

We will spend considerable time learning how to compute present value, future value, internal rate of return, and periodic payments.

Loans

Loan amortization, splitting payments between interest and principal repayments. A simple introduction to credit cards, leases, and mortgages.

Excel

We will spend considerable time building loan amortization tables.

Topic 9: How do auction markets work?

This topic will be taught via in-class market simulations rather than traditional theory.

Double auction markets versus open outcry markets

A classroom simulation of double auction markets and their crucial role in allocating resources efficiently. Showing students how markets converge to theoretical outcomes despite limited individual rationality.

Private value versus common value auctions

Understanding other auction formats, such as English, sealed-bid, and Dutch auctions. Demonstrating the winner's curse in common-value auctions.